prob.part11.23_24 - 1.1. SIMULATION OF DISCRETE...

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1.1. SIMULATION OF DISCRETE PROBABILITIES 15 At the end of a year, which hospital will have the greater number of days on which more than 60 percent of the babies born were boys? (a) the large hospital (b) the small hospital (c) neither—the number of days will be about the same. Assume that the probability that a baby is a boy is .5 (actual estimates make this more like .513). Decide, by simulation, what the right answer is to the question. Can you suggest why so many people go wrong? 14 You are oFered the following game. A fair coin will be tossed until the ±rst time it comes up heads. If this occurs on the j th toss you are paid 2 j dollars. You are sure to win at least 2 dollars so you should be willing to pay to play this game—but how much? ²ew people would pay as much as 10 dollars to play this game. See if you can decide, by simulation, a reasonable amount that you would be willing to pay, per game, if you will be allowed to make a large number of plays of the game. Does the amount that you would be
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This note was uploaded on 09/15/2009 for the course SCF scf taught by Professor Scf during the Spring '09 term at Indian Institute Of Management, Ahmedabad.

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prob.part11.23_24 - 1.1. SIMULATION OF DISCRETE...

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